Sellers Market In the Fraser Valley?
With BC having a strong economy and growing population for years to come the Real Estate Industry have expectations for continued housing demand in the Surrey & Fraser Valley in the coming years. All thou this demand will be met in contradiction with tougher mortgage rules, rising interest rates, and soaring home construction costs, and a new tax for Translink of $400 to $600 per unit.
The British Columbia Real Estate Association(BCREA’s) first quarter housing forecast update predicts residential sales will drop 12.3 per cent in the Surrey & Fraser Valley. With this year’s forecast for the province at 8.6 per cent.
British Columbia Real Estate Association (BCREA) chief economist Cameron Muir said in a statement. “Since the new rules came into effect, BC home sales have fallen more than 26 per cent, on a seasonally adjusted basis.” (talking about the new mortgage rules)
Fraser Valley home prices were predicted to hit an average listing price of $758,000. But the statistics so far from the Fraser Valley Real Estate Board show the average sale price in February 2018 has exceeding this number, hitting $774,627.
This price increase could be that the amount of listings on the market are lower than previous years. The most interesting thing is the condo market has hit the highest per square foot ever in Metro Vancouver. If prices of condo’s are almost as much as a detached home and the inventory is low for detached homes then could the writing on the wall for steady rise in detached homes?
We feel the biggest determining factor in the housing prices always come from out side forces, for example political environments abrade, how good the school systems are here in the Province, and how Canada compares to other places in the world for brining up families, and how the foreseeable future is to those looking to come to Canada. With all these factors looking on Canada’s side for a steady growth in real estate despite the opposition of new taxes and levies in construction costs. Rental unit costs have not come down in years and in fact are on the rise across the whole province making this a great time to invest into the detached housing market.
For more information on detached homes for investment or for your next family home contact Becky Zhou for Surrey Real Estate information. .